Losses on Production Lead to Reduced Output, Silicon Metal (Si≥97%) Prices Stabilize at Low Levels [SMM Analysis]

Recently, the price of silicon metal (Si≥97%) has been stable. The stabilizing prices of silicon metal have lessened the downward pressure on silicon metal (Si≥97%) prices, allowing them to stabilize. However, overall orders remain mediocre.

Currently, the market price for silicon metal (Si≥97%) has been stable for a while. The mainstream signing price for silicon metal (Si≥97%, 1.2%≤Fe<1.5%, Ca≤0.3%) is between 10,400-10,500 yuan/mt, and for silicon metal (Si≥97%, 1.5%≤Fe<1.8%, Ca≤0.5%), the mainstream signing price is around 10,300-10,400 yuan/mt. As of now, no prices of 10,000 yuan/mt or lower have been reported.

Although silicon metal (Si≥97%) prices are stable, production pressure on manufacturers remains high, especially in the high-cost Ningxia region. Local silicon metal (Si≥97%) manufacturers in Ningxia report that the signing price of silicon metal (Si≥97%, 1.5%≤Fe<1.8%, Ca≤0.5%) is 10,400 yuan/mt, resulting in a loss of 300-400 yuan/mt. Due to these losses, few companies are currently in production. According to SMM statistics, there are about 4-5 furnaces producing silicon metal (Si≥97%), and those that have reduced or halted production have no plans to resume in the short term. The current production is mainly concentrated in Gansu and Qinghai.

Recently, the silicon metal (Si≥97%) market prices have stabilized at low levels. Some manufacturers, benefiting from previous large orders, are still within the delivery period and have paused spot quotations. However, as we approach the end of August, new prices for September will soon be negotiated. Coupled with the impact of some above-standard silicon metal sources on the market, the demand for silicon metal (Si≥97%) remains mediocre. The back-and-forth negotiations between upstream and downstream continue, and SMM will keep tracking future price trends.